INVESTMENT OBJECTIVE

The Fund aims to maximize total investment return through capital appreciation in the real estate sector. While the strategy involves medium to high risk—primarily due to heightened geopolitical uncertainty in the CIS region and the currency volatility of the Ukrainian Hryvnia (UAH)—the Fund is managed by an External Manager with deep local expertise and robust risk mitigation frameworks.

To achieve its objective, the Fund invests both directly and indirectly in real estate, leveraging:

1. Direct property acquisitions;
2. Special Purpose Vehicles (SPVs); and
3. Exposure to real estate funds, equities, and other listed or unlisted instruments linked to the property market.

This strategic approach is designed to capitalize on the Manager’s market insight and operational capabilities, while adapting to evolving economic conditions.

KEY FACTS

> Sub- Fund name: N/A (Single Scheme)

> Fund Name: CLIFF CAPITAL GROWTH AIF V.C.I.C. LTD

> Product type: AIF (Single Scheme)

> Asset class: Direct Real Estate

> Region of investment: CIS, Ukraine

> Primary Benchmark: N/A

> Fund Base currency: EUR

> Share class currency: EUR

> Share class type: Accumulation

> Domicile: Cyprus

> Fund Managers:

• • Kypros Neocleous (Managing Fund since December 2023)

  • Roman Bielic (Managing Fund since December 2023)

FUND RISKS

The Fund invests in direct real estate and private equity assets and is intended solely for professional investors. Prospective investors should be aware of the following key risks:

• Capital at Risk: This product offers no protection from future market performance. Investors may lose some or all their investment.
• Illiquidity: Real estate and private equity assets are inherently illiquid. Disposals may take time or occur at a discount, potentially affecting the Fund’s ability to meet redemption requests in a timely manner.
• Redemption and Exit Risk: Early redemptions may be restricted, subject to notice periods or exit charges. Exit values may differ significantly from expectations, particularly in periods of market stress.
• Valuation Risk: Asset valuations, especially for private equity and real estate, rely on models and independent appraisals, which may not reflect actual realisable prices.
• Market and Economic Risk: Asset values can fluctuate due to macroeconomic factors, interest rates, inflation, political instability, or sector-specific trends.
• Financing and Leverage Risk: Use of borrowing can magnify both gains and losses. Rising interest rates or an inability to refinance may negatively impact returns. Leverage creates economic exposure beyond the amount invested.
• Real Estate Risk: Property investments face risks such as tenant defaults, location-specific volatility, regulatory changes, operational issues, and uninsured damage. Development projects may encounter delays, cost overruns, or planning obstacles.
• Private Equity Risk: Unlisted company investments may involve limited transparency, governance risks, dependency on key individuals, and uncertain exit routes.
• Emerging Markets Risk: Where applicable, investments in emerging markets may involve heightened volatility, currency risks, political instability, and lower regulatory standards.
• Concentration Risk: The Fund may hold a concentrated portfolio of assets in certain countries, sectors, or strategies. This may increase volatility and potential losses compared to a more diversified fund.
• Governance Risk: Management of underlying assets may, in certain cases, be delegated to third-party entities. This may limit the Fund’s control and introduce additional operational or oversight risk.
• Legal, Regulatory, and Tax Risk: Changes in law, regulation, or tax treatment in Cyprus or other jurisdictions may adversely affect the Fund and its investors.
• Currency Risk: The reference currency of the Fund may be different that the currency of the investments. Fluctuations in exchange rates between the reference currency and the relevant local currencies may directly or indirectly affect the value of the Fund’s portfolios and the ultimate rate of return realized by the investors.
• Use of Leverage: Use of leverage exposes the Fund to the potential of multiple gains, but so too leverage can drastically multiply losses.

For a full description of all risks, please refer to the Offering Memorandum and the Key Information Document (KID).

FUND COMMENTARY

Q3 2025 Ukrainian Real Estate Market Overview

Despite ongoing regional challenges, the Ukrainian real estate market in Q3 2025 continues to demonstrate remarkable resilience and strong investment potential. Residential prices rose by approximately 11% year-on-year, reflecting growing demand for modern, energy-efficient developments and the expanding role of property as a reliable store of value. Kyiv remains the country’s key investment hub, with steady buyer activity in secure central districts and renewed confidence among developers launching new high-quality projects. Western cities such as Lviv and Ivano-Frankivsk are also experiencing dynamic growth, driven by sustained internal migration and rising rental demand. The rental sector is thriving across safer regions, offering stable income opportunities for investors. In the commercial segment, logistics, warehousing, and mixed-use developments are emerging as strategic areas of expansion aligned with the country’s economic reorientation and reconstruction priorities. Although financing conditions remain selective, the medium- to long-term outlook is highly positive, underpinned by reconstruction funding, investor incentives, and a resilient domestic market. Overall, Ukraine’s real estate sector is entering a transformative phase, providing early investors with a unique opportunity to participate in rebuilding one of Europe’s most promising frontier markets.

Q3 2025 Real Estate Market Outlook for Eastern Europe

In Q3 2025, the real estate market across Eastern and Central Europe showed cautious optimism with signs of gradual recovery. While higher financing costs, inflation, and geopolitical uncertainty continued to weigh on sentiment, several structural factors supported medium-term growth. Investment activity remained selective but resilient, driven mainly by local and regional investors focusing on the residential living sector, logistics, and ESG-compliant assets. Demand for modern, energy-efficient developments and rental housing stayed strong, supported by supply shortages and ongoing urban migration. Yields across the region remained attractive relative to Western Europe, offering a clear return premium for investors willing to assume moderate risk. Countries in the region continued to benefit from their strategic location, improving infrastructure, and growing role as logistics and manufacturing hubs. Although the market is still adjusting to tighter credit and cautious global capital flows, investor sentiment is improving as valuation gaps narrow and refinancing conditions ease. Overall, Eastern Europe’s real estate market in Q3 2025 can be characterized as a value-driven and opportunity-rich environment, rewarding investors who adopt an active, long-term strategy focused on high-quality, well-managed, and sustainable assets.

Cliff Capital Growth AIF V.C.I.C. Ltd Fund

During the third quarter of 2025, the Fund continued to execute its long-term investment strategy focused on high-potential real estate opportunities within Ukraine, maintaining its commitment to capital growth through disciplined exposure to undercapitalized and emerging regional markets. The Fund’s net asset value (NAV) stood at €58.43 as of 30 September 2025, reflecting a modest recovery from earlier in the year, supported by improved valuation stability and continued resilience in select Ukrainian property segments.

As of the same date, the value of the Fund’s long-term investments totaled UAH 1,164,637,793, a level broadly consistent with underlying portfolio strength despite the ongoing currency and macroeconomic challenges. Movements in the Ukrainian Hryvnia continued to influence euro-denominated valuations; however, the impact has moderated compared to earlier periods, as the market began to stabilize and local investor sentiment improved.

The Fund remains constructive on Ukraine’s medium- to long-term real estate outlook, particularly in residential, logistics, and mixed-use projects situated in regions demonstrating structural demand and relative stability. Active asset management, prudent FX monitoring, and selective capital deployment remain central to the Fund’s approach, positioning it to capture upside as reconstruction and economic normalization progress.

FUND INFORMATION (as at as at 31/09/2025)